What is the fight against inflation doing to the global economy? | DW News

Daniel Leigh heads the World Economic Studies Division in the IMF's research department, which produces the World Economic Outlook. He will give us some insight on what will be going on in the world economy.

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[BrainKeener]

Okay this is good, but With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits

[Campbell]

Inflation is just a cover part, what is really happening is the countries have started to give up on their dollar reserves and push trillions into the market. Fed will be forced to do a lot of rate hike as the US cannot afford to loose their dollar value. If the value drops goods and services will go up in prices and its not inflation, its just needs to be re-evaluated on the prices.

[stevenjuan]

*With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $120, 000 bond/stock portfolio*

[c.moeller]

The way I see this recession most likely has an external cause. The United States is losing influence as a federal currency for the first time in decades. They don’t have any economies to utilize or control their inflation, and less money is being spent on stock and oil trading than previously. They all lend credence to the hypothesis that a new multilateral world order may be in the works.

[Rnankn]

I don’t understand why supply side constraints are solved by demand side policies? But if inflation is truly excess liquidity, why not remove money from the economy through taxation on the wealthiest? Instead we are regressively transferring wealth from public budgets and the indebted to the wealthiest. How is paying greater return to investors ‘the end of easy money’? Nor do I understand why price stability is a greater priority than the energy transition? Since we seem to have opted for private financing of climate mitigation, central banks should enable rather than disable that process. I also don’t understand why ‘markets set prices’, except when the value of capital changes relative to people and nature. Then it becomes necessary for central authorities to change the prices? I don’t understand how they can know what baseline to target? Oil has been underpriced for a century, natural resources are becoming scarce, and the world is experiencing economic change. Why would higher prices suddenly be ‘wrong’? And why isn’t higher wages or equitable distribution a better solution than destabilization and impoverishment?

[daniel]

An intelligent, high quality interview. Well done. Thank you DW News.

[phil_]

Even with Opec cutting output by 1 million?

[ijvgxqr]

Much of the inflation has been shown to be comprised of corporate greed. Profits are WAY UP!

[smefour]

Higher interest rates mostly hurt the poor and middle class with mortgages and low disposable incomes and savings, the wealthiest hardly notice, inflation is brought on by price gouging and higher than expected corporate profits, the system is broken for struggling families as they are the ones most hit by higher interest rates and the higher inflation brought on by corporate greed

[harunmwangi]

The lady asks very good questions 👏👏. And the answers were spot on 👏👏. German efficiency, watching from 🇰🇪🇰🇪🇰🇪

[marlandodaubon]

As soon as we dump the us we'll be fine but insanity is the game we play

[NJ-xpeb]

DW clearly we are hearing talks from experts who tell it is ok to work with broken calculator and just accept that normal people over 2 years should be prepared to go under in the fight for inflation, I don't' accept this nonsense, some of those experts actually increased if not even caused the issues we face now. To balance things out can you get a discussion rolling with a mix of financial, business, gov representatives and day to day people on how we can reform the broken system or start a new one to bring about fairness and prosperity across the globe and save our planet. Sick and tired of greedeconomics, we want discussions and implementions on fair economics. Thank you.

[Elliott_Wave]

Wrong on China too, just have a look at the shipping container index. down 19%.

[garysuplee]

The Economic horn, ..And One world 🌎 System.

[muhammadaliaziz]

Low income nations are facing not just debt distress and debt default, but also food and fuel insecurity due to hyperinflation triggered by war in Ukraine. More austerity measures will only create greater poverty. So why is Germany failing to tackle these serious global challenges, by playing a stronger leadership role beyond the borders of the European Union, by creating an international financial coalition, offering debt relief, moratorium and forgiveness to at least 50 poorest countries at the brink of debt default and starvation?

[TopDownFinance]

Even as rates rise, they're printing to bail out the banks with programs like BTFP in the US. The entire system is inflationary.

[hikarihikari]

For people interested in this topic, I suggest you check the PMI for Russia, EU and US. 😃

[iofzvhq]

The inflation problem seems really serious.

[Elliott_Wave]

you will have the energy predication wrong.

[lucasmartin]

The market has been pretty bad until today it decided to go up. Everyone was practically crying then. She continued to dive. That's what you get when you feel like you can navigate the process on your own. Many thanks to Valentina Morris. I am not worried about how bad the market is because my assets are insured due to your advice and I continue to receive my profits.